When SushiSwap (SUSHI) first came out, it was seen as one of the best ever projects in DeFi. Investor interest was instant and as such, the coin surged, hitting an all-time high of around $23.3 in March last year. But ever since, it’s been a challenging period for SUSHI. Can it really recover? Here is what you need to know:
From an ATH of $23.3, SUSHI is now trading at around $3.56.
SushiSwap is facing increasing competition in the DeFi space, especially DEXs.
It is highly unlikely the coin will ever regain the ATH anytime soon.
Data Source: Tradingview
SushiSwap (SUSHI) -The bleak picture ahead
If there is anyone out there biting their fingers waiting for SUSHI to ever return to $23.3, they may have to wait for quite some time. You see, unlike many coins that have fallen due to broader market headwinds as opposed to changes in underlying fundamentals, SUSHI has suffered from both.
First, the project behind SUSHI is having to deal with increasing competition from better, more efficient market entrants that are sucking quite a lot of users and TVL. SushiSwap has also had to deal with the congestion and high gas fees of Ethereum, which has limited scalability.
As for the short-term price outlook, we saw the coin fall below the crucial $4.2 support. We expect SUSHI to bottom at $2.8 before it has any significant rally.
Is SushiSwap (SUSHI) worth the risk?
Well, it will depend on your expectations. Although the coin has fallen from ATHs and is never getting back there soon, there is still a little upside. At the current price of $3.5, SUSHI is heavily discounted.
If sentiment improves in the market, we are likely to see a surge towards $7 by the end of the year. That would still be a 50% jump. Besides, the move to Ethereum 2.0 could help jump-start the project in the future.